Via Gateway Pundit, the feds are telling GM to get ready to file for bankruptcy:
The US Treasury Department has told General Motors to make all necessary preparations for a possible bankruptcy filing by June 1, even though the troubled automaker insists it can restructure its business on its own, The New York Times reported.
Citing unnamed people “with knowledge of the plans,” the newspaper said the instructions had been conveyed by members of President Barack Obama?s automotive task force, who spent last week in meetings and on conference calls with GM in Detroit and Washington.
The talks are expected to continue this week, the report said.
According to the paper, the goal is to prepare GM for a fast “surgical” bankruptcy.
The automaker already has been granted 13.4 billion dollars in federal aid, and its managers are insisting the company’s image should not be damaged.
Remember that scene in Goodfellas, when the restaraunt owner asks the mobsters for protection? They say sure, and then completely take over, using his business as their own little slush fund until it goes bankrupt and they burn it for the insurance money.
The analogy isn’t perfect, but…when you ask the guys who have all the muscle for help, you’re going to get help. Whether you like the kind of help you get or not.